WHAT ARE BITCOINS?

The simplest and the only quick answer would be that Bitcoins are electronic currency (a bit like Euro) that can be traded anytime with euros and dollars and it can be used to buy goods and services, or just to re-invest in bitcoin.

This answer, though, besides being simple, would also be simplistic, because it doesn’t help understanding all the underlying mechanisms concerning for example the safety of this currency, its creation and its trade: mechanisms that, unfortunately, cannot be explained or understood in just 5 minutes (not fully).

That’s why we decided to provide you three videos:

  • The first one is a one-minute video and is taken from the official site of the project bitcoin.org, you will need it to have a proper overview of Bitcoins’ creation, safety and trading.
  • Second one is a five-minute video, taken from World Street Journal channel and it will help to show you the effect that this currency is having on Italian and global economy.
  • Third one is a 30-minute video and it’s an interview by the independent journalist Claudio Messora to Marco Amadori, a researcher at Fondazione Bruno Kessler, you will need this one to dig inside very complex mechanisms, allowing you to make them clear and, by doing so, to find out the huge potential and the revolutionary aspect of this currency that many define as the currency of the future.

HOW DO BITCOINS WORK?

If you watched all the videos recommended, you probably already know the answer to this question. However, we’ll try to make this clearer, as far as possible.

Bitcoins are p2p electronic currency and to understand its functioning, then, we have to figure out what p2p means first.

What does p2p means?

When we say p2p (peer to peer), we are talking about a network of users in which anyone can send and receive data at any moment. A classic (and the best known) example of p2p is Emule. Have you ever heard of this one? When you download and install Emule all you do is basically log in to a virtual network in which every element of that network (meaning the one that has Emule) has the chance to receive or send files to other people that are part of it. That’s also how the network of Bitcoin works. The only difference is that, instead of sending files, you’ll send money, meaning bitcoins, instantly and without any service charge, without using sensitive data that could be used by third parties, and, most importantly, without taking the slightest risk.

Why without risks? Emule is full of risks, is full of viruses!

Legitimate objection, but Emule is full of viruses (that might metaphorically represent fake transitions, meaning fictitious items of bitcoins) due to the complete lack of monitoring. The network of bitcoin can rely on the work of miners, namely users that in addition to being a part of the network, contribute to make it safe, checking for the transactions to be real, saving them on a public registry, accessible to everybody, meaning it’s completely clear, and deleting all the other ones, removing any risk of scam. Anyone can choose to become a miner (we’ll see the necessary requirements later) and in exchange for the service performed for the community you’ll get bitcoins.

Who gives Bitcoins to the miners? I mean, who pays them?

Answer is easy: the network. Yes, that is exactly how this currency is created (or “mined”, slang), and that’s exactly the brilliance of this project. In fact, for every “closed” block of transactions, new bitcoins are automatically generated and distributed to the miners that have validated the transactions (for every block you earn 25 bitcoins, and this number halves every 210000 closed blocks), so this system basically auto-supports itself precisely because its users are pushed to make the network safe, and they also profit! But that’s not all, the fact that users are the ones generating the currency, avoids the currency to be manipulated by central and/or private banks, and that removes the risk of devaluation. That is also why bitcoins are defined as “people’s currency”. People create it, people trade it and people control it.

Why start using bitcoins?

For the following reasons:

  • Trading Bitcoins is easy, quick and instantaneous
  • Fees for the transfer are minimum (generally a few cents of euros)
  • Personal data are not required to make a payment
  • The number of online (and not) shops that allow the purchase of goods and services in bitcoins at a lower price than the original (because the running costs are lower) is increasing exponentially
  • Both Ebay and Amazon will soon allow to use bitcoins to shop, they already announced it, just search on google “ebay opens to bitcoins”.
  • In the world opened many cash machines, you just need to log to your account and withdraw euros
  • Bitcoin is an internationally recognized currency
  • A bitcoin account can be compared, in effect, to a bank account minus the expensive running costs
  • The value of bitcoins is expected to grow over time
Before you see how to become a part of this network that now has several millions of users, we want to try to clarify the last point of the list, meaning the value of bitcoins in past, present and future:

BEFORE WE START, HOW MUCH IS A BITCOIN WORTH?

You can see it yourselves in the lower square that shows the price of bitcoins in real time, offered by the site coindesk.com, and next to the graph we have included four services that will allow you to exchange bitcoins in euros, dollars etc. and vice versa: you’ll only need to click on the links to get more details. While we’re writing (December 2014) the value of Bitcoin is at 325$, but since it increases or decreases depending on demand and offer, and due to the young age of this currency the price is not established yet, and it’s subject to strong variations in the short term, while in the long term is set to increase. Why? Because they can’t be mined forever, the creator of the project, Satoshi Nakamoto, in fact, has set a specific number of bitcoins that can be mined: 21 million, and up to this day the ones mined are “just” 13 million, so, like all the goods that cannot be easily found, it’s set to increase its value over time, just like gold (the reference to which is not casual, considering that bitcoins have been designed as a gold mine). Just think that in the not-so-far away 2010, one year after the project started, it was made the first purchase of a not-virtual good with this currency: the user “Laszlo” of the bitcoinintalk.org’s forum, offered 10’000 bitcoins to whoever would have deliver two pizzas at his home. Another user accepted the offer and actually had them delivered to his home, paying 30$ for everything (little more than 20 euros), including the tip. You know how are worth today those 10’000 that earned the lucky user (assuming he didn’t sell them right after) to get him two pizzas? They’re worth the beauty of almost 3 million. In fact, the value of bitcoins went from 0,002€ to almost 300€ in 4 years, a jump of 5 zeros, making rich a few lucky ones (especially young computer scientists) that believed in the project. But that’s not all, because is forecast that it will do a jump of 3 other zeros in the next 10 years, being worth up to 300’000€ for bitcoin. Investing in bitcoins, then, can be very advantageous, especially if you can start doing it for free!

CAN WE START NOW? NOPE, SUBMULTIPLES FIRST.

Let’s take just another minute, before we begin. As I said before, mining a single BTC is not as easy as it once was and, therefore, is not something easy to earn. That’s why it’s necessary to know the submultiples of the BTC, because if the various sites would pay immediately in BTC before, now they do it with these “pennies” of a weird name. To learn about submultiples you’ll only need to check this chart out, and though it might look strange to you now, we assure you that you’ll get used to it really soon, and you will know at any time how many BTC you are earning (or, for example, the exact amount you want to invest in bitcoins). We remind you that bitcoins are a currency whose value is set to increase over time, and in four or five years a bitcoin might even be 360000€ worth, and so: earning even just a few cents is very profitable. Here they are:
0 Bitcoin
0
MilliBitcoin (mBTC)
0
MicroBitcoin (μBTC o Bits)
0
Satoshi

LET’S BEGIN, FINALLY! BUT… HOW TO START?

  • Online and offline Bitcoin Wallet – Let’s go!

    We finally have now all the necessary basis and we can start. To start our adventure in the world of Bitcoins we need to to create our Bitcoin wallet thanks to which we’ll be able to receive and send Bitcoins in total autonomy. We can create it in two ways:

    • Downloading the program from the official site bitcoin.org, that will allow us to create and check our bitcoin wallet straight from our pc (but be careful in this case, always do a backup and save it to a flash drive, otherwise you’ll risk to lose everything, if your hard disk gets broken)
    • Opening a bitcoin wallet online. Speaking of which, we advise you to sign up to Blockchain or to the great and newest service called “Xapo” that will make your experience in this new reality easy, safe and intuitive. Signing up to Xapo through this link you will get a bonus of 0.05 mBTC (50 Bits, or 5000 Satoshi) the moment you’ll verify your account!!

     

    It doesn’t matter the method you’ll choose: the result will always be the same: in fact, whether you choose to download the program, whether you choose to create your wallet online, you’ll get a link similar to this one: “1AHe7Vx4rzwKQAiQkEfRwtwtgU2QguUzge”. Once you get this, you should be able to start receiving/sending your payments in bitcoins and start earning free bitcoins!

    Online and offline Bitcoin Wallet – Let’s go!

Earn Free Bitcoin:

Finally, we get to the point: there’re really infinite ways to earn free bitcoins, there are for example sites that let you earn cents of bitcoins by clicking on their sponsors and visiting them for a number of seconds, other sites will let you do this through a simple sign up (always to their sponsors), others will have you download some apps for smartphones and others will just want you to send a tweet. For convenience and for ease of understanding, we subdivided all the possible ways in 5 main categories:

If, however, you’re not interested in earning free bitcoins, but you want to invest something, we suggest you the most common methods to invest in bitcoin:

Memo; to access to some links on this site (not the ones above, though) you have to wait for some seconds, and next you have to click on SKIP AD in the upper right, that’s our way to earn free bitcoins!

HOW TO EARN MINING. HOW TO MINE BITCOINS:

The first method (but unfortunately, less profitable than it used to be) to get bitcoins is mining. Not so long ago, the mining simply consisted of providing the computing power (with the help of an appropriate software) in order to solve some calculations that basically helped keeping the network safe (checking all the transactions), and mining bitcoins. As the project went on, though, calculations became more and more complex and hard to solve, and as a consequence, even with the newest pc you wouldn’t be able to mine not even a bitcoin in a decade. However, though it’s not that easy anymore, you can still try mining today, in two ways:

  • Mining on your own, but unfortunately you can’t start doing that for free anymore, in fact you’ll need to buy a hardware specifically designed for the mining, but these are very expensive and not for everyone. If you are curious to see them, you can check them out on ebay.
  • Mining in pool/cloud Clouds are sites that offer very powerful groups of servers (meaning computers) whose ultimate aim is to mine, and they “rent” part of their computing power of the server (called GH, gigahash) to those who want to begin. So you have to do nothing with your own pc (and that’s a very good thing), you only need to sign up on specific platforms and they do the rest, you’ll only need to check, occasionally, the bitcoins mined and, if you consider it necessary, rent some other Gh. Some sites let you re-invest in bitcoins the fruit of your work. One of the best ways to invest in bitcoin! Anyway if you want start mining with your computer (better choise in this case is to mine altcoin) you can do it with a pool. Below, we list you some clouds that give you 50Gh when you sign up, so you’ll only need to sign up to start mining for free!
2017 UPDATE: Unfortunately, there’re no more TRUSTWORTHY sites that give you GH when you sign up, or at least, we haven’t found any (we’re talking about TRUSTWORTHY sites that don’t disappear a few months after the registration). The only clouds of mining that revealed themselves as good are the ones we listed below: one is used only to mine online (by buying computing power), while with the other one you can mine even with your own processor and/or GPU.

GENESISMININGS

Surely the best and most stable one. Our staff mined 5 BITCOINS already thanks to this cloud!!!

Website Link

MINERGATEs

This is also a very good cloud (and pool) for mining. You can both buy GH to mine bitcoins online, or you can start mining alternative currencies (we recommend: Monero, ZCash or Bytecoin) for free, with your own processor and/or your own GPU.

Website Link

TO BE UPDATED

To update: if you know some stable clouds contact us through the form at the bottom of the page.

Website Link

EARNING FREE BITCOINS WITH THE FAUCETS

What are the faucets? Faucets are sites that pay parts of bitcoins to solve simple captchas (meaning pictures like this one ), once you solve the captcha you can demand your own reward that ranges from 100 to 5000 satoshis. The waiting time to repeat the operation (meaning to add a new captcha and demand a new reward) ranges from just one hour to 24 hours. The satoshis you collect time after time will accumulate and you’ll be able to ask for the transfer to your bitcoin wallet once you reach the minimum threshold of payment (we will indicate this below).

We remind you that the faucets to give bitcoins are fund with the help of advertising, and they’re often inundated with it, so: don’t be scared!

Here’s the list of the best faucets:

Waiting time: 5 minutes

Minimum threshold: 5500 Satoshis

Waiting time: 1 hour. Chance to multiply the bitcoins you have won

Minimum threshold: 5500 Satoshis

EARNING FREE BITCOINS WITH PPA (PAID PER ACTION)

What are PPAs? PPAs are sites that pay you to register in other sites (their sponsors), to download apps for smartphones, to fill out surveys, to take part in contests and so forth. We have made a list, that you can find below, with the most trusted sites of the field, with a brief description that will allow you to understand what can be done once you register to each site:

Qoinpro: on this site you’ll be able to earn bitcoins and other virtual currencies every day, without doing anything! You’ll only need to register to start with a “basic” account and you’ll get -everyday- credited with cents of bitcoins, litecoins, dogecoins, etc. with the possibility to level up if you invite your friends: the more you invite, the more the percentage of virtual currencies you’ll be credited for will increase. To be tried!

Coinbucks : this site let you earn free bitcoins downloading apps for your smartphone, downloading songs, taking part to contests and much more!

Bitcoinreward : this site gives you for free 1000 satoshis when you register. Once you register you’ll be able to earn other bitcoins by answering some surveys, signing up to sponsor sites etc.

Bitcoinget : this site let you earn free bitcoins in three ways: watching videos, completing offers and doing the things they suggest!

EARNING FREE BITCOINS WITH PPP (PAID PER PLAY):

We made for you a list of free (and not) sites that let you earn your bitcoins by playing

Satoshimines: who here has never played minesweeper? This site let you bet cents of bitcoin that will multiply every time you WON’T hit a mine! But be careful to stop in time, or you might lose everything!

Coincontroller: this game is not free. The goal of this is game is to take control of the currency and then give it away, getting the benefits. To do that, you have to buy the currency at its current value and wait (and hope) for someone else to buy it: doing so, we’ll get back the amount we paid at the beginning and we will earn from 10% to 30% of interest-rate.

EARNING FREE BITCOINS WITH PTCs:

What are PTCs? Sites that let you earn cents of bitcoins by visiting their sponsors (they pay them to be visited, and you’ll get paid with the money of the sponsor). To start earning in some of these sites you’ll only need to write your bitcoin link, while for other sites you’ll have to do a quick registration. Once you register, you’ll only have to check the list of sites you can visit and start your browsing, once you reach the minimum threshold to get paid (usually a few thousand of satoshis) you’ll be able to ask for the payment that will be sent to your bitcoin account. You can find below a list of the best PTCs, meaning the ones in which the payment is higher and the waiting time to visit again the sponsors is minimum:

Btcclickk

Earning: up to 10 bits
Waiting time: N/A
Website Link

VisitBit

Earning: 0,6 bits
Waiting Time: 10-15 seconds
Website Link

Coinadder

Earning: 50 Satoshis
Waiting time: N/A
Website Link

EARNING BITCOINS BY INVESTING, HOW TO INVEST IN BITCOINS:

Once you get a good number of bitcoins, you can decide to do two things: block them on your account, hoping that in four or five years bitcoin’s value will be so high to literally make us rich, or invest them (all or a part) to earn more, trying to minimize the risks involved. Below we listed all the services that will let you invest your bitcoins:

Cex.io: this site not only allows you to mine, by buying Gh/s, but it also allow you to resell them, and if you study a bit the trading, you can get great earnings. The “trick” is to buy gh/s when its price is lower and resell them when the price goes up. You can program the orders of SELL and BUY (so you don’t have to be online all the time) and your gh/s will keep mining until the sale (to the price set in the phase of SELL) won’t be provided. A good strategy is to re-invest all the profit and buy more hashing, with a bit of trading too. Surely, the best way to invest in bitcoin

BitcoinPyramid: pyramid scheme to earn BTC in two ways:

1) Investing just a few cents of Bitcoins and receiving interest-rates in proportion to the invested amount

2) By bringing other people to register through the link of referral

EARNING BITCOINS BY BETTING, HOW AND WHERE BETTING BITCOINS:

Last way to earn bitcoins is by betting them, but it’s not something we suggest to everyone, because to do that you have to know what you’re doing and what you’re getting into, so if you really want to do that you’ll need to get some information. Below, a list of sites that will allow you to bet in bitcoins:

CloudBet:surely the safest site of betting that accepts payments in bitcoins. You’ll be able to bet on sport or do your bets on casino! Good the “welcome bonus”.

That’s it for now! The list of the sites is constantly updated. If you want to contribute by telling us which links are broken or suggesting new services, you can do it using the form below. Thank you!

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